Shock and anger swept the holiday offices of Allied Brands on Christmas Eve.
Despite insiders being told these last two weeks that a "big acquisition" of Big Dad's Pies would be announced by Allied Brands (ABQ) before year-end, CEO Shane Radbone and Tony Cavanaugh were both huddled in their offices eating shit sandwiches after Big Dad's announced their sale to Retail Food Group (RFG)!
Allied Brands has been desperately looking for another purchase target in part to justify more money raising and share marketing. Big Dad's was to provide them with that opportunity.
Big Dad's however, shocked by the flood of bad operational reports from ABQ franchisees (many of whom were visited by investigators working for the principals) preferred to protect their franchisees with a reputable company, Retail Food Group.
Big Dad's management, including Stephen Donnelly, were also said to be worried about Allied's proposal which included mostly shares in this tanking company - especially after they heard how the Awesome Water boys had been screwed. The RFG buyout is funded with cash and no tricky new share issues, unlike the ABQ "growth strategy" that has diluted shareholders by 50% in the last year as profits disappeared.
Read all the purchase details here:
It will be another bleak Christmas for Allied Brands management as they try to find a way to stem the cash burn now that their reputation has taken another massive hit.
No comments:
Post a Comment